System and method for capturing sales tax deduction information from monetary card transactions

ABSTRACT

Systems and methods are provided for managing sales tax information. The information may be generated, for example, in connection with transactions involving financial accounts, such as a credit card account. The sales tax information may be received electronically from, for example, a merchant or a point of sale device. A determination may be made whether there is any missing sales tax information. If there is missing information a request may be generated and sent to a source having the information. The source may receive the request, retrieve the desired information, and transmit it to the requesting entity. The sales tax information may be stored and later retrieved for presentation to a user, such as the account holder. The account holder may use the information in completing a tax return.

CROSS REFERENCE TO RELATED APPLICATION

The subject application is a Continuation Application, and claimspriority under 35 U.S.C. § 120 to, U.S. patent application Ser. No.16/222,397, filed Dec. 17, 2018, which is a Continuation Application ofU.S. application Ser. No. 15/662,400, filed Jul. 28, 2017, now U.S. Pat.No. 10,169,829, which is a Continuation Application of U.S. applicationSer. No. 15/236,884, filed Aug. 15, 2016, now U.S. Pat. No. 9,747,645,which is a Continuation Application of U.S. application Ser. No.14/524,574, filed Oct. 27, 2014, now U.S. Pat. No. 9,418,386, which is aContinuation Application of U.S. application Ser. No. 13/017,948, filedJan. 31, 2011, now U.S. Pat. No. 8,893,958, which is a ContinuationApplication of U.S. application Ser. No. 12/534,488, filed Aug. 3, 2009,now U.S. Pat. No. 7,886,966, which is a Divisional of U.S. applicationSer. No. 11/221,229, filed Sep. 6, 2005, now U.S. Pat. No. 7,584,884,the entire contents of which are hereby fully incorporated by referencein their entireties.

TECHNICAL FIELD OF THE INVENTION

This invention relates in general to monetary card transactions and,more particularly, to systems and methods for capturing information fromsuch transactions to assist in tracking and reporting data for purposesof claiming sales tax deductions.

BACKGROUND

In certain circumstances, taxing jurisdictions may allow for a deductionof sales tax paid during the taxing period. For example, the AmericanJobs Creation Act of 2004 gives taxpayers the option to claim state andlocal sales taxes instead of state and local income taxes when theyitemize deductions. Currently, this option is available for the 2004 and2005 returns only, but may be extended. Additionally, similar laws mayexist or be enacted in other jurisdictions. In connection with currentfederal law, tables are available to enable taxpayers to determine theirsales tax deduction amount in lieu of saving their receipts throughoutthe year. Taxpayers use their income level and number of exemptions tofind the sales tax amount for their state. The table instructionsexplain how to add an amount for local sales taxes if appropriate.Taxpayers also may add to the table amount any sales taxes paid inconnection with certain purchases such as a motor vehicle, aircraft,boat, or home.

Taxpayers often use a monetary card to make purchases which includesales tax. An example of such a monetary card is a credit card. Creditcards are cards associated with a credit account. A credit card issuer,such as a bank or other financial institution, generally provides creditaccounts to customers, or cardholders, allowing the customers to makepurchases on credit rather than using cash. A customer incurs debt witheach credit card purchase which may be repaid over time according to theterms and conditions of the particular customer's credit account. Creditcard accounts provide a customer one or more lines of credit, typicallyincluding at least one revolving credit line in which the customer maychoose to pay the full amount of debt owed on an account by a specifieddate or alternatively defer payment of all or a portion of the debt to alater date. The credit card issuer typically charges the customerinterest or finance charges for such deferred payments during the periodof deferral.

The credit card issuer typically establishes a credit limit for eachcredit account defining the maximum amount of credit available to thecustomer for making purchases at any given time. When a customer makes acredit card purchase, the amount of credit available to the customer,often called the available balance, is reduced by the amount of thepurchase, and the amount of debt currently owed by the customer, oftencalled the outstanding balance, is increased by the amount of thepurchase.

It is common for consumers to make purchases using a card, which islinked to a financial account. The card may be any of a variety of typesincluding debit, credit, or stored-value cards. The accounts maysimilarly be of a variety of types including checking, savings, orcredit accounts. The card may be scanned, swiped, or otherwise processedat the location at which the purchase transaction is being conducted.This location is sometimes referred to as the Point of Sale (“POS”). APOS device, such as an electronic card reader, may be used to scan thecard, thus reading electronic information stored on a magnetic strip oron a chip on, or inside, the card. The electronic card reader may becoupled, via a telecommunications system to one or more computerslocated at the purchase site and/or at remote sites, such as banks andcard issuers. The electronic information is used by the variouscomputers to process the transaction and electronically transfer fundsfrom one account to another, such as from the consumer's credit accountto the merchant's bank account, in order to complete the transaction.

SUMMARY

In accordance with the present invention, systems and methods forproviding and managing transactions made using a monetary card andcapturing certain transaction information. The information is associatedwith the sales tax incurred by purchasing items using the card. Theinformation may be stored and later retrieved to assist a consumer inpreparing a tax return in which sales tax may be claimed as a deduction.

According to one embodiment, a system is provided for managing sales taxinformation associated with purchases made using a financial account.The system includes at least one processor, at least one databaseelectronically coupled to the processor, and a sales tax informationmanagement module operable to receive sales tax informationcorresponding to at least one transaction made using the financialaccount. The sales tax information management module is further operableto process the information and provide the information to an entityrequesting the sales tax information.

According to another example embodiment, a method is provided formanaging sales tax information associated with purchases made using afinancial account. One step is receiving transaction informationassociated with a transaction made using the financial account. Thetransaction information includes sales tax information. Another step isstoring the sales tax information. Another step is providing the salestax information to a user in response to a request for the sales taxinformation.

Various embodiments of the present invention may benefit from numerousadvantages it should be noted that one or more embodiments may benefitfrom some, none, or all of the advantages discussed below.

One advantage of the invention is that taxpayers can automatically tracktheir sales tax expenditures without having to, for example, manuallycollect receipts. This enables taxpayers to easily determine whether, ina taxation scenario that allows for a sales tax deduction to becalculated in multiple ways, a deduction based on the actual sales taxpaid in a given period will be preferable to some other method ofcalculating the deduction.

Another advantage is that sales tax information may be automaticallycollected without the need for involvement of the consumer. Sales taxinformation may be sent electronically from a point of sale device to adata storage device for later retrieval.

Another advantage is a reduction in errors in the calculation of a salestax deduction. Because sales tax information is automatically collectedby, for example, a computer system, errors are reduced in comparison to,for example, a manual system.

Another advantage is the potentially persistent storage of sales taxinformation. Electronic storage of the sales tax information on a datastorage device facilitates retrieval of the information beyond theperiod when the information might first be needed. For instance, theinformation might be retrieved a first time shortly before a taxreporting time. However, the information is still electronically storedshould it become necessary for future reporting times or, for example,an audit.

Another advantage is the automatic retrieval of sales tax informationfrom a data storage device and the automatic use of the information inthe preparation of an electronic tax return.

Other advantages will be readily apparent to one having ordinary skillin the art from the following figures, descriptions, and claims.

BRIEF DESCRIPTION OF THE DRAWINGS

For a more complete understanding of the present invention and forfurther features and advantages, reference is now made to the followingdescription, taken in conjunction with the accompanying drawings, inwhich:

FIG. 1 illustrates an example system for providing, activating, andusing a monetary card to make purchases in accordance with an embodimentof the invention; and

FIG. 2 illustrates an example method for tracking sales tax informationresulting from transactions involving the use of a monetary card.

DETAILED DESCRIPTION

Certain embodiments of the present invention are generally directed tothe tracking, storage, and management of sales tax information generatedas the result of transactions involving a monetary card. The monetarycard may be, for example, a credit card. The transactions may be, forexample, instances in which a consumer uses the card to make purchases.The purchases may be made at a store and the card may be used byinterfacing with a point of sale device. Information about the cardholder's account may be stored, for example, on a magnetic stripe on thecard. The card may be swiped through, inserted into, or scanned by, acard reader on the point of sale device. Information from the card maybe used to access the card holder's account. Sales tax informationresulting from the transaction may be automatically generated by thepoint of sale device, or by a sales device associated with the point ofsale device. The sales tax information may be electronicallycommunicated to a sales tax information management system and stored ina database as, for example, a record. The record may be stored inconnection with the particular card holder's account. For example, thetransaction record may include a card holder identification code. Whenthe card holder needs the sales tax information for a given period,software operating within the sales tax information management systemmay be executed and operable to retrieve the sales tax information forthe requestor from the database. The software may be further operable toformat the information in any of a plurality of possible formats. Thesoftware may be further operable to cooperate with a tax returnpreparation application and automatically provide the information to theapplication for use in determining a sales tax deduction in a taxreturn.

Example embodiments of the present invention and their advantages arebest understood by referring now to FIGS. 1 and 2 of the drawings, inwhich like numerals refer to like parts.

FIG. 1 illustrates an example system 10 for providing, activating, andusing a monetary card to make purchases in accordance with an embodimentof the invention. System 10 may include an issuer 12 and a plurality ofmonetary cards 14 provided by issuer 12. Generally, an issuer providescards 14 to customers that may be used to make purchases from merchantsthat accept the cards 14 as a form of payment for goods dr services.

A card 14 may be any card having one or more memory devices 30 providedon the card 14 that can store various data, such as a monetary value 20,a customer identification code 22, a card identification code 24 anexpiration date 26, and/or an account number 28 as discussed below. Asused herein, the phrase “provided on card 14” with reference to memorydevices 30 or other devices (e.g., a processor) describes any physicalcoupling of such devices to a card 14, such as the device being providedon a surface of the card 14, located at least partially within the card14, or otherwise physically coupled to the card 14. For example, a card14 may be any suitable monetary card such as a credit card, astored-value card, a smart card, a gift certificate card, a store card,a payroll card, a government benefits card, a telephone calling card, ora mall card that includes memory for storing various data related to thecard 14, the issuer 12, and/or the customer.

The customer identification code 22 stored on a card 14 may providesecurity to prevent the card 14 from being used by unauthorized persons.For example, in some embodiments, in order to make purchases using thecard 14, a customer (e.g. the card holder) must provide a code matchingthe customer identification code 22 stored on the card, such as byverbally communicating the code to a cashier or other personnelassociated with the relevant merchant 13 or by entering the code into acustomer interface, such as a card interface device 40, for example. Insome embodiments, the customer identification code 22 is similar to aPIN or other security code, and may be selected by the purchaser orowner of the card 14, or by the merchant 13. Each customeridentification code 22 may include any number, combination and/orconfiguration of numbers, letters, symbols, characters, or any otherdata that may allow that customer identification code 22 to beidentified and/or distinguished from other customer identification codes22. The customer identification code 22 may be stored in a memory device30 provided on the card 14, which may or may not be the same memorydevice 30 that stores the monetary value 20, card identification code 24and/or expiration data 26 of the card 14.

The card identification code 24 stored on a card 14 may be used toidentify the card 14 from other cards 14. In some embodiments, each card14 has a unique identification code 24. Card identification code 24 maybe stored in a memory device 30 on card 14, which may or may not be thesame memory device or devices 30 that store the monetary value 20,customer identification code 22 and/or expiration date 26 on the card14.

The expiration date 26 stored on a card 14 may indicate a date and/ortime that the card 14 may expire, may also be stored in a memory device30 on card 14, which may or may not be the same memory device or devices30 that store the monetary value 20, customer identification code 22and/or card identification code 24 on the card 14.

The account number 28 may identify the account associated with the cardand/or the card holder. The account may be any type of financial accountwhich may be associated with the monetary card 14. For example, whencard 14 is a credit card, the associated account may be a credit cardaccount. The account number enables system 10 to determine which accountinformation it needs to access to conduct transactions involving theparticular card holder using card 14 to make purchases. The accountnumber also enables system 10, or a user of system 10, to accessinformation concerning the account. Such information may include anyinformation associated with a financial account. This may include,without limitation, name, address, telephone number, social securitynumber, credit limit information, available credit information,available funds information, billing history, payment history,identification codes, interest paid, and the like.

The monetary value 20, customer identification code 22, cardidentification code 24, expiration date 26, and/or account number 28 maybe stored in the same memory device 30, in separate memory devices 30 ofthe same type, or in separate memory devices 30 of different types.Memory device or devices 30 on a card may include any device or devicessuitable to store data, such as one or more magnetic stripes,transistors, RFID devices, and/or memory chips, such as random accessmemories (RAMS), read-only memories (ROMs), dynamic random accessmemories (DRAMs), fast cycle RAMs (FCRAMs), static RAM (SRAMs),field-programmable gate arrays (FPGAs), erasable programmable read-onlymemories (EPROMs), electrically erasable programmable read-only memories(EEPROMs), or flash memory, for example. Other electronic devices mayalso be stored on cards 14, such as a processor operable to processvarious data stored in memory device(s) 30, for example.

To make a purchase using the card 14, the cardholder presents the card14 to a card interface device 40 provided by merchant 13. Thepresentation may be accomplished by swiping the card, inserting thecard, scanning the card, or keying in information on, or associated withthe card.

Card interface 40 may include any device or devices for readinginformation from and/or writing information to cards 14. For example,card interface 40 may be a credit card authorization interface, a smartcard reader, a debit card reader, or a stored value card reader, forexample. Card interface device 40 may be operable to read data fromand/or write data to one or more types of memory devices 30 provided oncards 14. Card interface device 40 may interface with such memorydevices 30 provided on cards 14 via physical contact or otherwise, suchas via radio or electromagnetic waves, for example.

Card interface device 40 may read the current monetary value 20,customer identification code 22, card identification code 24, expirationdata 26, and/or account number from memory device(s) 30 on card 14. Thecard holder may then provide (or attempt to provide) a code matching thecustomer identification code 22, such as by speaking the code to thecashier or other personnel associated with the merchant 13 or bymanually (e.g. by typing or keying) or otherwise entering the code intoa customer interface, such as a card interface device 40, for example.The merchant 13 may then compare the customer identification code 22read from the card 14 with the code provided by the cardholder. Thiscomparison may be performed or at least facilitated by any suitablecomputerized system, such as card interface device 40 or any othercomputer system associated with or available to merchant 13.Alternatively, the cashier or other personnel associated with themerchant 13 may manually compare the customer identification code 22read from the card 14 with the code provided by the cardholder. If thecustomer has provided the correct code, and if the current monetaryvalue 20 read from the card 14 is sufficient for the purchase, merchant13 may execute the purchase by reducing the current monetary value 20stored in the memory of card 14 by the amount of the purchase.

Card interface device 40 may be part of, or otherwise electronicallycoupled, to a sales device 15. Sales device 15 may be any point of saledevice such as an electronic cash register or a computer. While salesdevice 15 and card reader 40 are shown as separate device, they may becombined into a single device.

Preferably, card reader 40 and/or sales device 15 are electronicallyconnected to a communications network 41, which is in turn connected toissuer 12. Issuer 12 may be, for example, a financial institution or anyother entity which manages accounts associated with card 14. Issuer 12may be a bank or a credit card issuer, for example.

Merchant 13 may include any entity suitable for accepting payment fromcards 14 in exchange for various products or services. A merchant 13 mayinclude a single entity (such as, for example, an individual store) or anumber of entities (such as, for example, a chain of stores). A merchant13 may include a seller or distributor that sells items produced by oneor more otherwise unaffiliated producers. In addition or as analternative, a merchant 13 may include a producer that sells one or moreitems it produces directly to customers using cards 14, bypassingdistributors. Merchant 13 may include one or more outlets at one or morephysical locations and may, in addition or as an alternative, includeone or more call centers where phone orders are received from customersusing cards 14, one or more websites or other virtual locations whereelectronic orders are received from customers using cards 14, and/or oneor more warehouses (which may be owned by merchant 13 or owned by one ormore entities separate from merchant 13 for which merchant 13 sellsitems to cardholders) where orders received from customers using cards14 are filled. Although merchants 13 are described as selling items tocustomers using cards 14, the present invention, as described above,contemplates any suitable transactions between merchants 13 andcustomers using cards 14. As an example, a merchant 13 may rent one ormore items to customers using cards 14. As another example, a merchant13 may include an entity which provides services in exchange for paymentfrom a customer using a card 14, such as a barber or auto mechanic, forexample.

Issuer 12 may include a data management system 56 that provides variousfunctionalities with respect to cards 14 and their associated accounts.Issuer 12 may further include a plurality of function modules 52 and oneor more operator terminals 58. The components of issuer 12 may belocated at one or more sites and may be coupled to each other using oneor more links, each of which may include, for example, some or all of acomputer bus, local area networks (LANs), metropolitan area networks(MANs), wide area networks (WANs), portions of the Internet, a publicswitched telephone network (PSTN), any other appropriate wireline,optical, wireless, or other suitable communication link, or anycombination of the preceding.

An operator terminal 58 may provide an operator, manager, otheremployee, or other individual associated with issuer 12 with access todata management system 56 and function modules 52 to obtain informationfrom, exchange information with, manage, configure, or otherwiseinteract with customer accounts. Operator terminal 58 may include acomputer system. As used in this document, the term “computer” refers toany suitable device operable to accept input, process the inputaccording to predefined rules, and produce output, for example, apersonal computer, workstation, network computer, wireless data port,wireless telephone, personal digital assistant, one or more processorswithin these or other devices, or any other suitable processing device.Although shown as a separate component, operator terminal 58 may includeor be partially or completely integrated with the other components ofissuer 12.

Data management system 56 may manage data associated with cards 14 andtheir associated accounts, which may, in particular embodiments, includecreating, modifying, and deleting data files associated with cards 14.Additionally, data management system 56 may call one or more functionmodules 52 to provide particular functionality according to particularneeds, as described more fully below. Data management system 56 mayinclude a data processing unit 60, a memory unit 62, a network interface64, and any other suitable components for managing data associated withcards 14. The components of data management system 56 may be supportedby one or more computer systems at one or more sites. One or morecomponents of data management system 56 may be separate from othercomponents of data management system 56 and one or more suitablecomponents of data management system 56 may, where appropriate, beincorporated into one or more other suitable components of datamanagement system 56. Further, data management system may be integratedwith any of the other components of issuer 12.

Processing 60 may process data associated with cards 14 and theirassociated accounts, which may include executing software or codedinstructions that may in particular embodiments be associated with theone or more function modules 52. Memory 62 may be coupled to processor60 and may include one or more suitable memory devices, such as one ormore random access memories (RAMs), read-only memories (ROMs), dynamicrandom access memories (DRAMs), fast cycle RAMs (FCRAMs), static RAM(SRAMs), field-programmable gate arrays (FPGAs), erasable programmableread-only memories (EPROMs), electrically erasable programmableread-only memories (EEPROMs), microcontrollers, or microprocessors.

A function module 52 may provide particular functionality associatedwith handling cards 14, such as, for example, generating cards 14,selling cards 14 to customers, setting up cards 14, activating cards 14for use, enabling transactions using cards 14, providing security,managing the monetary values 20 stored on certain monetary cards (suchas stored-value cards) and/or deactivating cards 14, for example. Afunction module 52 may be called by data management system 56 to performthe particular functionality associated with the function module 52.

According to the embodiment shown in FIG. 1, function modules 52 mayinclude a card management module 70, account management module 72,transaction module 74, and sales tax information management module 76.Like data management system 56, function modules 52 may be physicallydistributed such that each function module 52 or multiple instances ofeach function module 52 may be located in a different physical locationgeographically remote from each other, from data management system 56,or both. In addition, each function module 52 may be partially orcompletely integrated with other function modules 52 and/or with othercomponents of issuer 12. For example, particular function modules 52 mayinclude one or more operator terminals 58 such that at least a portionof the functionality of such function modules 52 is provided by humanoperators. Thus, it should be understood that the functionality providedby each function module 52 may be completely automated, partiallyautomated, or completely human-controlled.

Card management module 70 may provide functionality associated withproviding cards 14 to customers. For example, module 70 may performfunctionality associated with advertising, mailings, card manufacture,card setup, card vending, etc. This module may be operable, for example,to write, or store, various data in memory device(s) on a card 14,including one or more of initial monetary value 20, customeridentification code 22, card identification code 24, expiration date 26,and account number 28 for the card 14. Some or all of such data may bestored on a card 14 before the card is provided to a customer, or duringactivation of, or purchase of, the card. Module 70 may also provide cardactivation functionality. The card holder or an operator, or othersuitable entity, may interface with module 70 to activate cards 14.

Account management module 72 may perform any functionality associatedwith the management of account information. For example, module 72 mayenable the storage of account information in memory 62. Accountinformation may include any information applicable to a particularaccount. Such information may include, without limitation, names,addresses, social security numbers, codes, balances, available credit,payment information, transaction histories, billing information,birthdates, passwords, account types, etc. Module 72 may be accessed anytime an event occurs, which affects an account. For example, a purchaseby a consumer using a credit card would change the available creditinformation in the account records associated with the credit cardaccount.

Transaction module 74 may be generally operable to manage transactions(or attempted transactions) made using a card 14. For example,transaction module may be operable to receive information concerning atransaction from a point of sale device or other sales device, whichgenerates sales or other transaction information. In at least oneexample embodiment, sales information is generated by a card readingdevice. The sales information is transmitted to the issuer 12 via acommunications network and may be processed using module 74. Transactioninformation can include any information related to any transaction.Transactions may include the sale or purchase of goods or service.Transaction information may include, without limitation, merchantidentification information, transaction amount, purchased iteminformation, date, time, purchaser identity information, sales taxinformation, location information, customer and card codes, accountnumbers, etc.

Sales tax information management module 76 may manage, or be used toprocess, any information associated with sales tax. Such information mayinclude, for example, purchase type information, location information,purchase amount information, sales tax amount and/or percentageinformation, date and time information, merchant identity information,purchaser identity information, etc. Preferably, module 76 is used toreceive, process, store, and generate sales tax information. Module 76may receive sales tax information, for example, in the transmission ofdata from a merchant to the issuer. Module 76 may process sales taxinformation, for example, by changing the format and/or data structureof the received sales tax information. Module 76 may store sales taxinformation, for example, by storing associated data in memory 62. Suchdata may be stored according to any suitable data storage method.However; in at least one embodiment, sales tax data is stored in recordshaving fields. Module 76 may generate sales tax information, forexample, by retrieving sales tax data from memory 62. Preferably, suchdata is accessible to operators within issuer 12. In certainembodiments, the data is also accessible directly by customers.Alternatively, the data may be accessible indirectly by customers afterthe data has been retrieve, processed, and converted into a medium ordisplay format which is accessible by the customer. For example, incertain embodiments, the customer may be provided with a reportcontaining the sales tax information in a predetermined format, or in aformat selected by the customer. In another alternative, the customermay view the information through the use of web interface. In othersituations, the customer may receive the information audibly from ahuman or by way of a voice activated and/or menu driven phone system orcall center system.

Module 76 may also be employed to generate requests for sales taxinformation. For example, if the received information is missing acertain type of data, module 76 may recognize the absence of such dataand generate a request for the data. The request may be sent to anysuitable source from which the information may be obtained. In oneembodiment, the request is sent to a customer. In another embodiment,the request is sent to merchant (e.g., electronically communicated fromissuer 12 to merchant 13 or to an electronic component within merchant13). In another embodiment the request is sent to another database. Forexample, depending on the type of information being sought, the requestmay be sent to a database storing that particular type of information.The request may include various parameters, which may be portions of thesales tax information data, for example. In one example, if the salestax amount is missing, but the transaction location and purchase amountare known, module 76 may generate a request to a sales tax rate lookuptable stored in a database. Based on the location information, module 76may retrieve the applicable tax rate. Based on the purchase amount,module 76 may calculate the tax amount. This information may then bestored, or later retrieved, as previously described.

FIG. 2 illustrates an example method for managing sales tax informationassociated with purchase made using a monetary card. At step 200 acustomer makes a purchase. In at least one embodiment the purchase ismade using a monetary card (such as a credit card) at a point of saledevice. However, the other types of purchases may be incorporated intothe method. For example, even purchases made without monetary cards maybe made. For example, it is possible, in certain circumstances, to makea purchase without a card if a customer provides a suitable code linkedto a financial account. Any such transaction may be utilized as long astransaction data may be captured. Also, although the term “customer” isused, any entity conducting a transaction that generates transactiondata may fall within the scope and spirit of at least certainembodiments of the invention.

At step 202, the merchant sends transaction information. Thisinformation may be sent by any suitable method. In one embodiment, thetransaction data is sent electronically from a point of sale device.However, the data may be sent via any method including, for example,orally over a telephone. In one embodiment, the information is sentdirectly to a card issuer. In other embodiments, the information is sentindirectly to the card issuer and may pass through a number of otherentities (e.g., financial institutions) prior to reaching the issuer. Instill other embodiments, the information may be sent to an entitydistinct from the, issuer for processing and storage in accordance withthe above description provided in connection with FIG. 1. Theinformation may be transmitted through any suitable communicationsnetwork and in any suitable format and/or protocol. Although the term“merchant” is used, it is envisioned that other entities might send thetransaction information.

At step 204, the transaction information is received. In at least oneembodiment, the information is received by a card issuer. As alreadydiscussed, however, other scenarios may exist. The issuer receives theinformation, for example, through a network interface. Preferably, theissuer executes one or more applications, using software (for example)to process the information. Processing may include changing the formatof the information. Processing preferably includes at least analyzingthe information to determine whether it includes one or more pieces ofsales tax information.

At step 206, a determination is made whether the transaction informationincludes one or more pieces of sales tax information. This may beaccomplished, for instance, by one or more processors. The sales taxinformation being sought may include one or more of a plurality ofparameters such as, for example, purchaser name, purchase type, purchaseamount, location, date and time information, merchant identityinformation, codes, sales tax amount, sales tax rate, and any otherinformation already discussed herein or which may be associated with afinancial transaction. If the determination is made that all of thedesired sales tax information is included in the transactioninformation, the method proceeds to step 222 where the transactioninformation is stored. If, however, the determination is made that allof the desired sales tax information is not included, then, in step 208,another determination is made.

In step 208, a determination is made whether the missing sales taxinformation is information that may be available from the merchant. Ifso, in step 210 a request is generated and sent to the merchantrequesting the missing information. The request may be sent according toany of the techniques already discussed. At step 212, the merchantreceives the request, generates the required information, and transmitsthe information to the issuer. If, at step 208, the determination ismade that the missing sales tax information will not be available fromthe merchant, then, at step 214, another determination is made.

At step 214, a determination is made whether missing sales taxinformation is available from another source (other than the merchant).Other sources may include, without limitation, another entity, such as acustomer, or a database. If the determination is made that theinformation will not be available from any other source, then the searchfor missing information is ended at step 220 and the method continues atstep 222 with whatever information is available. If the determination ismade that the information is available from another source, then, atstep 216, a request is generated and transmitted to the other source. Atstep 218, the other source receives the request, generates and/orretrieves the information, and transmits the information to the issuer.In certain embodiments, requests for missing information may be sent toany or all potential sources without first determining whether theinformation will be available. In such situations, the sources (e.g.,merchant or database) will simply provide the information if it isavailable.

The missing information obtained from the merchant or other sources maybe any portion of the transaction information. As an example, sales taxinformation, such as the sales tax amount, may be missing. Thedetermination may be made that the merchant will not have thisinformation. Thus, the method dictates that a request be generated andtransmitted to a database having tax rates for various jurisdictions.The request may include information necessary to prompt the source toreturn the desired information. For example, a request for a tax ratemight include location information. This might be used, for example, byan application to determine what tax rate to retrieve from the database.Once the tax rate is retrieved, then the purchase amount and tax ratemay be used to calculate the amount of sales tax. Thus, in generatingrequests for missing information, collateral sales tax information maybe used. This already-available information may also be used to processthe retrieved missing information to calculate additional missinginformation.

At step 222, the transaction information is stored. The information maybe stored in any suitable memory device, or manually. The informationmay be stored according to any acceptable data storage format orprotocol. For example, the information may be stored electronically inone or more databases in electronic records having fields correspondingto the various pieces of information. Also, the information may first beprocessed to determine which pieces of information will be stored and inwhat form. For instance, the transaction information may include salestax information to be stored in one location by one module orapplication, and other information to be stored in a different location.

At step 224, a customer requests sales tax information from the issuer.Although the information is being requested from the issuer, the requestmay be made of any entity that has control of or access to, theinformation. For example, the request may be made to a third party thatin turn accesses the information from the issuer or whatever entity hasthe information. Also, while a “customer” is referred to as making therequest, the request may be made by other entities or by, for example,software applications. For instance, a request may be generated by a taxpreparation application that interfaces with the issuer to request andretrieve the sales tax information.

At step 226, a report is generated and provided to the customer (oranother entity or application making the request in step 224). Thereport may be provided in any suitable format. Report formats mayinclude a plurality of parameters that are predetermined. Alternatively,the customer may select among various parameters to customize the reportformat. Reports may be provided electronically, on an electronic medium,in hard-copy form, orally, through computer-generated voices or othersignals, through the use of a graphic user interface, online, on a website, or by any other suitable method.

According to one embodiment, one or more suitable issuer componentsinterface with a tax preparation application to provide the sales taxinformation to the application for use in preparing a tax return. Thetax preparation application may be executed remotely from the issuer, ormay be incorporated into the issuer system. According to an aspect ofthis configuration, the sales tax information is automatically generatedand/or retrieved and automatically downloaded into the appropriatememory or record fields of the tax preparation application. According toan alternative, the sales tax information may be transmitted to otherentities, such as an accountant, or the taxing authority.

Modifications, additions, or omissions may be made to the method withoutdeparting from the scope of the invention. Additionally, steps may beperformed in any suitable order without departing from the scope of theinvention.

Although an embodiment of the invention and its advantages are describedin detail, a person skilled in the art could make various alterations,additions, and omissions without departing from the spirit and scope ofthe present invention as defined by the appended claims.

What is claimed is:
 1. A system for managing transaction informationassociated with purchases made using a financial account, the systemcomprising: an issuer processor configured to: receive transactioninformation associated with a transaction; compare the transactioninformation with a predetermined set of required information todetermine whether sales tax information is included in the transactioninformation; when the issuer processor determines that the sales taxinformation is included in the transaction information: store thetransaction information in memory; when the issuer processor determinesthat the sales tax information is not included in the transactioninformation: transmit a request for the sales tax information; receivethe requested sales tax information; and store the transactioninformation and sales tax information in the memory at a first timeperiod; and a tax preparation application interface configured totransmit the stored sales tax information to a tax preparationapplication at a second time period that allows the sales taxinformation to be formatted and populated in a tax return.
 2. The systemof claim 1, wherein the issue processor is further configured to receivetransaction card data associated with a financial account for thetransaction and the issue processor is further configured to receivetransaction information from at least one source selected from acustomer device and a third-party database.
 3. The system of claim 2,wherein the issue processor is further configured to: process thetransaction using the stored transaction information and the sales taxinformation.
 4. The system of claim 1, wherein the request for the salestax information is transmitted to a merchant processor via a network inresponse to a determination by the issuer processor that the merchantprocessor has the sales tax information.
 5. The system of claim 2,wherein a merchant processor receives the transaction card data from atransaction card interface device.
 6. The system of claim 5, wherein thetransaction card interface device comprises a device selected from thegroup consisting of a credit card authorization interface, a smart cardreader, a debit card reader, and a stored value card reader.
 7. Thesystem of claim 5, wherein the transaction card interface device isconfigured to read the transaction card data via at least one of: acontact connection, a radio wave connection, and an electromagnetic waveconnection.
 8. The system of claim 2, wherein the transaction card datacomprises at least one of: a current monetary value, a customeridentification code, a card identification code, an expiration date, andan account number.
 9. The system of claim 1, wherein the tax preparationapplication formats the sales tax information in a predetermined format.10. The system of claim 3, wherein the tax preparation application isexecuted remotely from the issuer processor.
 11. The system of claim 3,wherein the tax preparation application is executed by the issuerprocessor.
 12. The system of claim 1, wherein the issue processor isfurther configured to transmit the sales tax information to a memberselected from an accountant and a taxing authority.
 13. A method formanaging transaction information associated with purchases made using afinancial account, the method comprising: receiving transactioninformation associated with a transaction; determining whether thetransaction information includes sales tax information; responsive todetermining that the transaction information includes sales taxinformation, storing the sales tax information in memory; responsive todetermining that the sales tax information is not included in thetransaction information: determining geographic location information forthe transaction; determining, based on the geographic locationinformation, applicable sales tax information to be received from athird-party database; receiving the applicable sales tax informationfrom the third-party database; and calculating a sales tax amount basedon the received applicable sales tax information and a purchase amountof the transaction information; and transmitting the calculated salestax amount to a tax preparation application that allows the sales taxamount of the transaction information to be formatted and populated in atax return.
 14. The method of claim 13, further comprising receivingtransaction card data associated with a financial account for thetransaction.
 15. The method of claim 14, further comprising processingthe transaction using at least a portion of the transaction card dataand the sales tax amount of the transaction information.
 16. The methodof claim 13, further comprising transmitting the sales tax informationto a member selected from an accountant and a taxing authority.
 17. Amethod for managing transaction information associated with purchasesmade using a financial account, the method comprising: receiving thetransaction information associated with a transaction, the transactioninformation comprising sales tax information related to the transaction;identifying sales tax information based on the transaction information;and transmitting the sales tax information to a tax preparationapplication that allows the sales tax information to be formatted andpopulated in a tax return.
 18. The method of claim 17, furthercomprising: processing the transaction using the transaction informationand the sales tax information.
 19. The method of claim 17, wherein arequest for the sales tax information is transmitted to a merchantprocessor associated with the transaction in response to a determinationthat the sales tax information is missing from the transactioninformation.
 20. The method of claim 17, further comprising transmittingthe sales tax information to a member selected from an accountant and ataxing authority.